"Northwest Indiana has been the backbone of American steelmaking for generations," said ERI Executive Director Gabriel Filippelli, a report co-author. "But the technologies that built that legacy are now putting the region at a competitive disadvantage. Our analysis shows that modernizing these mills offers a path to slow or reverse decades of job losses while ensuring the industry has a future in Indiana."
Northwest Indiana is home to three of the nation's seven remaining primary steel mills — Burns Harbor, Indiana Harbor, and Gary Works — which together produce roughly 47% of the country's primary steel. However, these facilities rely heavily on coal-based blast furnace technology that has changed little in more than a century and is rapidly losing market share to modern alternatives.
At their mid-20th century height, Northwest Indiana steel mills employed more than 65,000 workers. Globalization, automation, and the rise of alternative steelmaking technologies, however, have reduced direct steel employment in the region to roughly 9,000 workers today. Without investments in modernization, researchers project that number could drop to fewer than 5,000 jobs by 2034.
Transitioning to modern steelmaking methods — such as direct reduced iron paired with electric arc furnaces or electric smelting furnaces — could help sustain long-term employment while creating thousands of new construction and clean-energy jobs tied to facility upgrades and expanded electricity generation.
“These technologies are already being deployed across the United States and globally,” said 5 Lakes Energy Lead Consultant Elizabeth Boatman, who contributed to the report. “If Indiana invests in modernization now, the state can remain a national leader in steel while capturing new economic opportunities tied to clean energy and advanced manufacturing.”
Researchers lay out several practical pathways to transition Northwest Indiana steel mills to modern steelmaking technologies, estimating costs to be roughly $1.5–2.2 billion per facility for partial modernization and $2.8–3.6 billion for full modernization — well within the scope of steel companies’ recent capital investments.
Beyond economic benefits to workers and the broader Indiana economy, researchers highlight significant public health improvements associated with modern steel production. The current coal-intensive process produces large amounts of air pollution, including carbon dioxide, sulfur dioxide, nitrogen oxides, and fine particulate matter.
Researchers estimate that air pollution from Northwest Indiana’s steel mills contributes to about $100 million in healthcare costs annually, along with hundreds of respiratory emergency room visits and tens of thousands of lost work and school days each year.
Modern steel technologies could reduce key air pollutants by roughly 50– 60%, while also cutting climate-warming emissions by 45–76% depending on the energy source.
“Cleaner steelmaking wouldn’t just provide a boost to the economy of Northwest Indiana,” Filippelli said. “It would also lead to improved air and water quality, reduced healthcare costs for Hoosier families, and a higher quality of life for communities like Gary and East Chicago. The health and environmental benefits of making these investments would be transformational.”
Media contact
Jonathan Hines
Assistant Director of Strategic Communications, IU Environmental Resilience Institute
johines@iu.edu | 812-856-3610
About the Environmental Resilience Institute
Indiana University's Environmental Resilience Institute bridges academia, applied research, and community resilience to deliver the science-informed, equity-centered solutions needed to flourish in a changing climate. Through community partnerships, transformative research, and immersive learning, ERI is creating a more sustainable and prosperous future. Learn more at eri.iu.edu.
